Life,Holistic Living: Delivering Superior Customer Experience

Sensitivity analysis - H1 FY23 (Pre-Merger basis) Analysis based on key metrics Scenario Change in Change in VNB Margin 1 % Change in EV Increase by 1% -1.4% -2.3% Reference rate Decrease by 1% 0.7% 1.9% Equity Market movement Decrease by 10% -0.2% -1.4% Increase by 10% -0.5% -0.4% Persistency (Lapse rates) Decrease by 10% 0.5% 0.4% Increase by 10% -0.5% -0.8% Maintenance expenses Decrease by 10% 0.5% 0.8% Increase by 10% -4.2% ΝΑ Acquisition Expenses Decrease by 10% 4.2% ΝΑ Increase by 5% -1.5% -1.0% Mortality/Morbidity Tax rate² Decrease by 5% 1.5% 1.0% Increased to 25% -5.0% -8.4% 39 1. Post overrun total VNB for Individual and Group business 2. The tax rate is assumed to increase from 14.56% to 25% and hence all the currently taxed profits in policyholder/shareholder segments are taxed at a higher rate. It does not allow for the benefit of policyholder surplus being tax-exempt as was envisaged in the DTC Bill. HDFC Life

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